Strong AI demand is tightening the market for multilayer ceramic capacitors (MLCCs), with some customers paying two to three times normal prices to secure supply from major makers such as Yageo and Murata. Delivery lead times have now extended to 12–16 months. Yageo said capacity utilization is climbing, with standard products expected to hit above 90% this quarter from roughly 80% and specialty products staying high, pushing the company closer to full loading. A growing number of AI-related clients are seeking long-term agreements to lock in capacity for six months or even years. Yageo is expanding output in Kaohsiung, Suzhou, Vietnam and Mexico. Large MLCC makers are prioritizing big customers and long-standing partners, leaving smaller buyers with tighter supply and forcing them to scramble and pay premiums. Meanwhile, Japanese suppliers Murata and Taiyo Yuden have raised their outlooks, citing stronger-than-expected demand from AI servers and data centers that is boosting use of high-capacitance parts.
Strong AI demand is triggering a supply squeeze in the passive components market, with multilayer ceramic capacitors (MLCCs) now hard to source. Some buyers are paying two to three times the usual price to secure inventory from suppliers such as Yageo and Murata, and delivery lead times have stretched to 12–16 months.
Yageo sees capacity filling fast
Yageo, a major MLCC maker, said demand is very strong and capacity utilization keeps climbing. Standard products are set to move from around 80% to above 90% this quarter, while specialty products remain at high levels, with the overall loading close to capacity.
An increasing number of AI-linked customers want long-term contracts to lock in capacity for six months or even years, reducing their supply risk. Yageo is expanding production in Kaohsiung, Suzhou, Vietnam and Mexico to deal with the pressure.
Smaller buyers forced to pay up
Large MLCC manufacturers are prioritizing major clients and long-time partners, squeezing smaller customers that have to bid higher to get parts.
Japanese suppliers lift forecasts
Japan's Murata and Taiyo Yuden have also raised their outlooks, pointing to stronger-than-expected demand from AI servers and data centers, which is driving higher usage of high-capacitance MLCC products.
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